Nov 20th, 2025
Fed’s Hammack Says Rate Cuts May Boost Risks, Prolong Inflation
Federal Reserve Bank of Cleveland President Beth Hammack warned that lowering interest rates to support the labor market could extend the period of above-target inflation and increase financial stability risks. She said, “lowering interest rates to support the labor market risks prolonging this period of elevated inflation, and it could also encourage risk-taking in financial markets,” during a conference Thursday hosted by the Cleveland Fed.
